Solana’s SOL is among the leading digital assets by market capitalization that witnessed massive losses this week. The escalated bearish condition pushed the alternative token out of the range that Solana navigated in nearly ten weeks.
SOL has seen continued downtrends over the past six days, losing more than 25% amidst the timeframe. While publishing this post, the token changed hands at $36.25. That led to an ascending range exit. Remember, Solana has hovered within this area since mid-June.
Solana’s massive bearish action within the last day already pushed the token into the next foothold after leaving the ascending range. That’s near $36, the value area that previously acted as a support zone on July 26 and June 4.
Bears have the chance to stretch their dominance to push beneath this mark. Such outcomes will open the path towards the value area of $32. Solana previously hit this support barrier at June end and July’s initial two weeks.
SOL On-Chain Activity
Solana’s social dominance declined to monthly lows over the past 24 hours. That’s normal as this metric flowed into leading assets such as Bitcoin as they experienced a crash over the week. Nevertheless, Solana saw an improved weighted sentiment over the past three days.
The slight improvement in weighted sentiment regardless of the decline could mean a healthy signal. It shows that market players are expecting recoveries following the latest crash. Investors interested in dip-buying may consider previous support floors to buy at discounted prices.
Solana has seen massive development activity over the past four weeks, regardless of the prevailing headwinds. Impressive development activity often encourages market players during bearish markets. It shows the asset concentrates on growth, and Solana sees such developments. That could trigger market players to buy more SOL tokens at a lower price.
Solana’s present price action has mimicked broad market tendencies. Thus, SOL enthusiasts should also watch overall market sentiments. That can help predict potential sentiment shift over the weekend. Bears infested the crypto world during this publication. However, time will showcase what upcoming tendencies might have.
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